RDP 9502: Price Stickiness and Inflation Equation (7)

Δp( SDS )=0.5 [ θ 0 = θ _ θ ¯ θ 1 = ( 2π+ θ 0 + θ 1 )dΦ( θ 1 ,SDS )dF( θ 0 ) +( 1F( θ ¯ )+F( θ _ ) ) θ 1 = ( x+π+ θ 1 )dΦ( θ 1 ,SDS ) + θ 1 = θ _ ( π+ θ 1 x )dΦ( θ 1 ,SDS )+ θ 1 = θ ¯ ( π+ θ 1 x )dΦ( θ 1 ,SDS ) ]. MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacqqHuo arcaWGWbWaaeWaaeaacaWGtbGaamiraiaadofaaiaawIcacaGLPaaa cqGH9aqpcaWGWaGaamOlaiaadwdadaWabaqaamaapehabaWaa8qCae aadaqadaqaaiaaikdacqaHapaCcqGHRaWkcqaH4oqCdaWgaaWcbaGa amimaaqabaGccqGHRaWkcqaH4oqCdaWgaaWcbaGaamymaaqabaaaki aawIcacaGLPaaacaWGKbGaeuOPdy0aaeWaaeaacqaH4oqCdaWgaaWc baGaamymaaqabaGccaGGSaGaam4uaiaadseacaWGtbaacaGLOaGaay zkaaGaamizaiaadAeadaqadaqaaiabeI7aXnaaBaaaleaacaWGWaaa beaaaOGaayjkaiaawMcaaaWcbaGaeqiUde3aaSbaaWqaaiaaigdaae qaaSGaeyypa0JaeyOeI0IaeyOhIukabaGaeyOhIukaniabgUIiYdaa leaacqaH4oqCdaWgaaadbaGaamimaaqabaWccqGH9aqpcuaH4oqCga qhaaqaaiqbeI7aXzaaraaaniabgUIiYdaakiaawUfaaaqaaiabgUca RmaabmaabaGaamymaiabgkHiTiaadAeadaqadaqaaiqbeI7aXzaara aacaGLOaGaayzkaaGaey4kaSIaamOramaabmaabaGafqiUdeNba0ba aiaawIcacaGLPaaaaiaawIcacaGLPaaadaWdXbqaamaabmaabaGaam iEaiabgUcaRiabec8aWjabgUcaRiabeI7aXnaaBaaaleaacaWGXaaa beaaaOGaayjkaiaawMcaaiaadsgacqqHMoGrdaqadaqaaiabeI7aXn aaBaaaleaacaWGXaaabeaakiaacYcacaWGtbGaamiraiaadofaaiaa wIcacaGLPaaaaSqaaiabeI7aXnaaBaaameaacaaIXaaabeaaliabg2 da9iabgkHiTiabg6HiLcqaaiabg6HiLcqdcqGHRiI8aaGcbaWaamGa aeaacqGHRaWkdaWdXbqaamaabmaabaGaeqiWdaNaey4kaSIaeqiUde 3aaSbaaSqaaiaadgdaaeqaaOGaeyOeI0IaamiEaaGaayjkaiaawMca aiaadsgacqqHMoGrdaqadaqaaiabeI7aXnaaBaaaleaacaWGXaaabe aakiaacYcacaWGtbGaamiraiaadofaaiaawIcacaGLPaaacqGHRaWk daWdXbqaamaabmaabaGaeqiWdaNaey4kaSIaeqiUde3aaSbaaSqaai aadgdaaeqaaOGaeyOeI0IaamiEaaGaayjkaiaawMcaaiaadsgacqqH MoGrdaqadaqaaiabeI7aXnaaBaaaleaacaWGXaaabeaakiaacYcaca WGtbGaamiraiaadofaaiaawIcacaGLPaaaaSqaaiabeI7aXnaaBaaa meaacaaIXaaabeaaliabg2da9iqbeI7aXzaaraaabaGaeyOhIukani abgUIiYdaaleaacqaH4oqCdaWgaaadbaGaaGymaaqabaWccqGH9aqp cqGHsislcqGHEisPaeaacuaH4oqCgaqhaaqdcqGHRiI8aaGccaGLDb aacaGGUaaaaaa@D453@